Iraq renews deal, provides Egypt 4mn bl of crude

Iraq's government headed by prime minister Mohammed Shia al-Sudani on 20 March approved the renewal of the crude deal with Egypt, which will allow Egyptian state-run EGPC to buy 4mn barrels of Iraqi crude oil in June and August.

"EGPC will acquire 2mn barrels of Iraqi medium sour Basrah crude in June and the same quantity in August, under the same contractual terms previously agreed on," the government said following its 12th regular session.

Egypt finalised a direct term supply deal in early 2017 to import an average of around 1mn bl per month of crude oil from Iraq — in 2mn bl lots every two months — following Saudi Arabia's decision to indefinitely suspend a five-year products supply deal under a favourable long-term credit line.

The deal, which comes with payment facilities, will help Cairo partially cover its crude import demand during a deepening financial crisis affecting the country.

By Bachar Halabi